INF/TE/SSD/R/10  
 
14 July 2022 
(22-5374) Page: 1/5 
Trade and Environmental Sustainability Structured 
Discussions  Original : English  
 
  
WTO TRADE AND ENVIRONMENTAL SUSTAINABILITY STRUCTURED DISCUSSIONS  
INFORMAL WORKING GROUP ON CIRCULAR ECONOMY – CIRCULARITY   
HELD ON 18 MAY 2022 (10:00-13:00) 
Summary of discussions1 
1  Introductory remarks by the facilitators  
1.1.  The facilitators of the Working Group on Circular Economy, Olivia Cook (Chile) and Kazunari 
Morii ( Japan ), recall ed the constructive  discussions on circular economy that took  place in the TESSD 
plenary meeting of March 2022. They noted  Members' recognition of circular economy as an 
important policy objective for environmental sustainability while setting different policy scopes and 
employing various policy tools at the national level. They mentioned that this meeting would serve 
to introd uce business perspectives on the circular economy t o enhance Member s' common 
understanding  in this regard.  This would enable Members to identify trade -related issues that 
businesses were facing and which could  be addressed by governments.  
2  Presentations by the International Chamber of Commerce (ICC) and representatives of 
IKEA, Mercedes Benz Group, Ragn -Sells  Group  and TrashCon  
2.1.  The representative of the International Chamber of Commerce (ICC) recalled a study 
commissioned by the ICC on Trade and Circular Ec onomy , which had been  presented at the  TESSD 
meeting o f 7 February  2022. The study  had found that the lack of consistent policy frameworks at 
national, regional and global level s had hindered progress towards a circular economy . Businesses 
could help ident ify related obstacles by  sharing their perspectives on what sort of policy frameworks 
could promote the transition to the most sustainable and circular business models.  
2.2.  The representative of IKEA made a presentation on how IKEA was rethinking business models 
to enable a transition from a linear to circular economy. Working on a global scale, trade played a 
key role for IKEA's  ability to conduct business in this transition and a change in its customer 
behaviour emphasized the need to  find long-lasting sustainable solutions. IKEA had made a  
commitment to use only renewable and recyclable material sources by 2030 , which required  
transforming its complete value chain. Opportunities in the process  included : (i) using circularity to 
limit climate impact and address resource scarcity ; (ii) exploring new business models and circular 
innovations ; and (iii) redefining waste. Challenges for the development of circular business models 
included the need for : (i) a holistic approach and scalability  through harmonization and common 
definitions ; (ii) an incremental development approach ; (iii) understand ing new sustainable models , 
including trade of primary and secondary materials and products ; and (iv)  developing infrastructure 
while limiting administ rative burdens . 
2.3.  The representative of the Mercedes Benz Group underlined  three action points on how to reduce 
and rethink resource consumption: (i) design for circularity ; (ii) achieving longer lifetime ; and 
(iii) closing the loop by introducing recycled m aterial into the supply chain. Emphasizing the 
importance of batteries  and extending their lifetime , the presentation informed about related 
difficulties such as : (i) cross -border transport issues ; (ii) classification of batteries as "waste "; 
(iii) customs procedures ; and (iv) regulatory fragmentation for batteries ' regulation. She also 
 
1 This summary, prepared and circulated under the facilitators ' responsibility, is being shared with a 
view to providing delegations with a record of the discussions. It provides a non -exhaustive, illustrative review 
of the issues addressed by Members at the meeting.  INF/TE/SSD/R/ 10 
 
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  pointed to  possible solutions such as rethinking used batteries as secondary raw materials by looking 
at their pur pose instead of their functionality , and international harmonization on how to treat 
batteries.  
2.4.  The representative of the Ragn-Sells Group informed on the compan y's activities to circular 
solutions  and re-using resources that would help food security and build a sustainable society. The 
company was working towards putting CO 2 in a circular loop by treating ash and combining it with 
captured CO2 to form calcium carbonate , which could then  be used to produce vinyl flooring. On the 
agricultural front, the comp any was providing closed loop solutions by devising technical solutions 
to extract detoxified nutrients from wastewater treatment plants. Regulatory barriers and 
heterogeneity hindered trade in recycled products, including detoxified nutrients (e.g.  potass ium, 
nitrogen, phosphorus) that could be used in fertilizers.  
2.5.  The representative of TrashCon not ed that less than  10% of waste in developing countries such 
as India was  segregated. The company had develop ed a technology to resolve the issue of waste 
segregation  by separating plastic and food waste s and reus ing plastic waste to make plywood sheets 
that could be used for furniture. Trade challenges face d by the company included vague policies, 
fragmented regulations for the waste management industry, la ck of subsidies on circular economy, 
different approach es to waste management by governments/bureaucracy, and a lack of uniformity 
in operating model s and policies suited to fit vested interests. Suggestions for short  and long -term 
solutions included impro ving the  policy framework , enhancing accountability, allocation of subsidies 
for circular technologies, increased stakeholder involvement, and standardization of products.  
3  Presentation by the World Economic Forum (WEF) on possible vertical and horizontal 
approaches for circular trade  
3.1.  The World Economic Forum (WEF) made a presentation on trade -related challenges and 
possible solutions for improving e -waste recycling, as well as what trade policy could more broadly 
do to support the momentum towards a global circular economy. Opportunities related to e -waste 
recycling included tapping into approximately USD 57 billion in materials like iron, copper and gold , 
and critical materials for green energy transition, creat ing new jobs , and reduc ing emissions by 
replacing primary extraction of materials with recycling. It also highlighted challenges pertaining to 
the transboundary movement of electronics and e -waste under the PIC procedure of the Basel 
Convention and suggested exploring digitalizatio n and improving cooperation between environment 
and trade policy to bring trade facilitation expertise to hazardous waste trade management.  
4  Reactions to the presentations  
4.1.  Five Members2 took the floor to react to the presentations and discuss challenges and 
opportunities of businesses in the respective sectors. The representative of Tajikistan announced 
that it would join TESSD as co -sponsor , underlining  the importance of boosting trade and 
environmental sustainability for  the benefit of all Member s. He noted that , under the Paris 
Agreement , Tajikistan  had committed to reduce  greenhouse gas emissions by 80-90% compared to  
the 1990 level and , with the support of the international community , it aimed to reduce its emissions 
by 65-75%. 
4.2.  One Member emphasi zed the importance of achieving "circularity " beyond material flow and 
encompassing emissions and , in this context, shared its belief in the key role that the circular 
economy and circular carbon economy c ould play in achieving the goal of global sustainable trade. 
Another M ember noted the strong message that came through the presentations that circula r 
economy needed a holistic approach,  which could be impeded by fragmented regulations even when 
done with best interests. It also noted the interlinkages of climate change with circular economy and 
suggested  to focus on specific areas such as e -wastes.  
4.3.  Another  Member emphasized that the objective of the Basel Convention was the  protection of 
the environment and that Members ' objective s to facilitate trade  should not  undermine the need to 
protect the environment and human  health. It was also suggested to ex plore the contributions of 
the circular economy in achieving the 10 Year Framework of Programme s on Sustainable 
 
2 Ecuador, European Union, Japan, Saudi Arabia  and Tajikistan . INF/TE/SSD/R/10  
 
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  Consumption and Production  Patterns  (10YFP) , which would be presented at the Stockholm+50 
conference . 
4.4.  Another  Member highlight ed the role that circular economy play ed in contributing to the 
conservation of biodiversity. It noted that discussions on circular economy should focus on  promotion 
and facilitation of trade in environmental goods and services, including bioeconomy, sustainable 
tourism, agriculture, forestry and substitutes.  According to this Member, technology and financing 
are essential elements  to enhance the potential of circular economy . Further, it noted  that 
discussions on circular economy should be aligned with the Basel and S tockholm Convention s and 
should also account for public health.  
5  Exchange of views by Members  
• What are Members' experiences and lessons learned from efforts to advance circular 
economy goals (including reducing unsustainable resource use, promoting resource  
efficiency, sustainability and safety across product lifecycles, restoring and regenerating 
ecosystems , and minimizing waste) and the opportunities and challenges linked to trade 
and trade policies?  (Indications of specific sectors/trade -related issues of  Members' 
interests and expected outcomes are welcome.)  
5.1.  The last segment saw eight Members3 take the floor to exchange views. Several Members 
shared their national experiences on how a circular economy approach was supporting sustainable 
development and climate change goals. Canada shared that it was actively pursuing research and 
engagement to identify opportunities to accelerate the transition to a more circular economy across 
the country. In order to achieve its ambitious plan to eliminate plastic waste by 2030 and transition 
to a circular economy, it had implement ed a "right to repair " to extend the lifetime of products such 
as home appliances and electric appliances rather than purchasing new ones. It was also de veloping 
a strategy to encourage value -retention processes (VRPs) including remanufacturing, refurbishment, 
reuse and repair.  
5.2.  Switzerland also shared a national experience by stating that it ha d a well -functioning system 
of PET and glass bottle recycling. The system operate d within a federal regulation that require d 
three  quarter s of bottles to be recycled. A deposit fee occurred if  the percentage d id not reach this 
threshold. It noted that , in practice, more than 80% of bottles were returned to dedicated c ollection 
points , which were managed on the basis of a voluntary sectoral solution. While such systems ha d 
their own limitations, these experiences demonstrate d that putting circular economy into practice 
could be successful.  
5.3.  As the first country in Latin America to adopt a National Circular Economy Policy in 2019 , the 
representative of Colombia informed that its strategy promote d efficiency in the use of materials, 
water and energy, taking into account the resilience of ecosystems and the circular use of m aterial 
flows.  The main objective  of its strategy  was to increase its recycling rate from 8% to 12.5% by 
2022 while prioritizing action on six material or resource flows: industrial materials and consumer 
goods; packaging materials; biomass; energy; water ; and building materials . 
5.4.  The representative of Chile noted that circular economy should be realised through: 
(i) eliminating waste from product  design ; (ii) k eeping materials and products in use for as long as 
possible ; and (iii)  regenerating natural systems. On this note, it spoke about a management tool 
that had resulted in a Roadmap for Circular Chile by 2040 , prioritizing 28 initiatives and serving as 
a basis for promoting the transition . This roadmap was organi zed into four main and complementary 
axes: circular innovation, circular culture, circular regulation , and circular territories.  This was in 
addition to the Extended Producer Responsibility Law, in force since 2016, which made producers of 
priority products re sponsible for financing the proper management of waste generated by products 
that were sold on the domestic market (whether national or imported products).  Chile also shared a 
few ideas on challenges it had faced such as encouraging better access to spare and repair parts for 
products through trade facilitation or innovative regulatory tools  and facilitating  recycling and waste 
recovery  by improving the information provided on the composition of certain products that were 
imported -exported . 
 
3 Canada, Chile, Colombia, Costa Rica, European Union, Japan, Switzerland, and Uni ted States . INF/TE/SSD/R/ 10 
 
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  5.5.  The representati ve of Japan shared a national practice with the group. It  apprised the group of 
its domestic legislation that had been updated to reflect the evolving concept of a circular economy, 
and currently encompasse d themes such as resource efficiency, material eff iciency and the 
interdependence of environmental sustainability and economic growth. On this note, it encouraged 
discussions within TESSD on a sector -specific basis in areas where there was widespread recognition 
of the benefits of  circular economy , while avoiding unnecessary overlap with other fora.  
5.6.  The representative of Costa Rica noted that it had  launched its National Bioeconomy Strategy 
in August 2020 , an initiative that ha d a knowledge -based, green and resilient decarbonized and 
competitive eco nomy as its model. It propose d the application of the principles of a circular 
bioeconomy and decarbonization of production and consumption processes. It also provide d a 
framework for the integration of public and private proposals, the orientation of inve stments, 
development of incentives  and the articulation of production and environment. This strategy was 
expected to be implemented in three phases over the course of 10 years: the impulse phase, the 
scaling -up phase and the consolidation phase.  
5.7.  The repres entative of the United States  shared that , since 2009, it ha d promoted the concept 
of sustainable materials management (SMM), which advance d the systemic and productive use and 
reuse of materials over their lifecycles with limited impact on the environment . Under its Save our 
Seas 2.0 Act, a circular economy was defined as an economy that use d a systems -focused approach . 
It had also recently released a National Recycling Strategy  with five strategic objectives : (i) improve 
markets for recycling commodities ; (ii) increase collection and improve materials management 
infrastructure ; (iii) reduce contamination in the recycled materials stream ; (iv) enhance policies to 
support recycling ; and (v) standardize measurement and increase data collection . It clarified that , 
while this initial 2021 Strategy focuse d on the recycling of municipal solid waste, it intend ed to 
undertake additional work to create a circular economy where materials (such as plastics, food 
waste, electronics and industrial materials) were sustainably managed throughout their lifecycle.  
5.8.  The representative of the European Union shared its three -pronged approach to circular 
economy: (i) improving product design so that waste and hazardous chemicals c ould be designed 
out right at the beginn ing of a product 's conception ; (ii) maintaining the material resources and 
energy from which products were made for as long as possible in the economic cycle ; and (iii)  end-
of-life phase of products, where the objective was to bring back into the economic cycle secondary 
raw materials and recycle d waste to the extent possible. Echoing Japan's point, the EU noted  that 
trade policy should by synergic to relevant multilateral environmental agreements, notably the Basel 
Convention, in supporting the harmoni zation of waste standards and treatment practices at the 
international level, as well as making sure that exports of waste d id not generate environmental or 
public health challenges in destination countries.  
6  Interventions by stakeholders  
6.1.  The representative of Forum on Trade, Environment and the SDGs (TESS) raised a few points 
in mapping circular economy trade. First, limitations in the HS system in relation to definitions ma de 
it difficult to extract enough information about trade in circular, for e.g. it d id not differentiate 
between second -hand goods, secondary raw materials or re -manufactured goods. Second, it would 
be useful to map the circular economy policies which ha d trade implications and map different trade 
related issues across the lifecycle of a p roduct starting from the extraction stage to product design, 
manufacturing, packaging, consumption and the end -of-life stage. Third, it suggested that focusing 
on key value chains in sectors such as electronics, chemicals, textiles or agriculture could als o be 
useful.  
6.2.  The representative of the United Nations Environment Programme  (UNEP) shared that , in 
alignment with the recent UNEA resolution of March 2022, UNEP was working on a project with two 
national case studies  – in Thailand and Kenya  – to assess the  role of trade policy in supporting 
circular and sustainable textile value chains. The project buil t on the flagship report  on Sustainability 
and Circularity in the Textile Value Chain , published by UNEP in 2020, which identifie d environmental 
and socio -economic hotspots and impacts along the value chain, recognized  a plethora of initiatives 
to address these impacts, and outline d priority action areas. This project ha d undertaken two main 
activities , which were identifying environmental hotspots in textile value chains linked to the triple 
planetary crises and identifying and evaluating trade policy and trade -related measures to support 
textile value chains.  INF/TE/SSD/R/10  
 
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  6.3.  The representative of the Quaker United Nations Office (QUNO ) highlighted a key challenge in 
differentiating waste from recyclable waste was developing benchmarks  in the form of joint 
standards as that would give a boost to trade that support ed the circula r economy. It was noted 
that, with the right enabling conditions, the circular economy could provide new opportunities for 
economic diversification, value creation and skills development. It was also emphasized that circular 
economy transition at the inter national level should include technical assistance and capacity 
building for developing Members and , at the local level, it should consider  the impact on resource 
and land requirements and , by extension , on the human rights of all, including indigenous 
communities.  
6.4.  The representative of  the United Nations Economic Commission for Europe  (UNECE ) underlined 
the role that consumers and producers play ed in circular economy  transition , and how they c ould be 
supported at national, regional and international level s. It also emphasize d the importance of a 
sectoral approach  and as an example shared its UNECE Toolbox on Transparency and Traceability , 
which  traced the environmental and social impacts along supply chains.  At present, it cover ed sectors 
such as cotton, l eather, minerals and agrifood. It also invited the group to participate at its  event 
on 27 June, " Harnessing the power of trade and economic cooperation for the circular economy 
transition ". 
6.5.  Echoing other speakers' points, the representative of the Organis ation for Economic 
Co-operation and Development (OECD ) noted that circular economy should extend to supply chains 
and to achieve that there was a need to improve transparency and traceability of value chains . It 
also reiterated the need to have clarity in definitions and classifications of waste, secondary 
materials, second -hand goods and goods for refurbishment and remanufacturing  while harmonizing 
circular economy -related standards and conformity assessment  procedures . 
6.6.  The representative of  the United Nations Industrial Development Organization (UNIDO ) 
provided updates on its medium -term programming framework with three strategic objectives , 
which were climate neutral industry and circular economy, digital t ransformation and innovation , 
and a focus on the value chains sector to trigger structural transformation. Based on this portfolio, 
they cover ed circular bioeconomy, plastics, textiles, electronics, construction and construction 
materials such as cement, g reen chemistry and innovative business models. In addition, it ha d set 
up 66 resource efficient and cleaner production centres in 51 developing countries in collaboration 
with UNEP since 1994. UNIDO also informed that it was a member of the International O rganization 
for Standardization ( ISO) technical committee on circular economy , which was working on 
standardizing definitions under circular economy practices.  
7  Concluding remarks by the Facilitators  
7.1.  The facilitators thanked  Members and stakeholders for sharing their  perspectives  and 
experiences in advanc ing circular economy goals across a broad range of areas . They noted that it 
would  be important to pay attention on how to address opportunities and challenges of the circular 
economy for the sustainable development of developing countries and LDCs.  Going forward, the 
facilitators invited interested  Members to share their ideas and views with them regarding issues to 
be addressed in their work.  
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